Ireland has lost 2,205 pubs since 2005 — one in every four trading in that year — according to a report from Dublin City University economist Anthony Foley, commissioned by the Drinks Industry Group of Ireland (DIGI).

The study, released this month, records an average of 110 closures every year over the past two decades. The 2025 net of 86 closures came in below 2023's figure of 117, but rose from 65 in 2024. The lost premises equate to thousands of rural and urban hospitality jobs and a measurable contraction in licensed floor space nationally.

What is driving the decline?

Foley, Associate Professor Emeritus at DCU, frames the contraction against an economy that has expanded significantly over the same window.

"Over the past 20 years the Irish economy has grown substantially, including large employment, consumption and adult population increases, despite multiple economic shocks and geopolitical disruption," he said. "This growth should have supported the alcohol and public house sectors. However, both alcohol consumption and pub sales volumes declined substantially."

He cited three converging pressures: Ireland's alcohol excise rate, the second highest in the European Union; rising operating costs across energy, insurance and labour; and shifting consumer demand toward home consumption, off-trade retail and late-licence alternatives.

Which counties are bearing the brunt?

Every one of Ireland's 26 counties lost pubs between 2005 and 2025. The steepest declines:

• Limerick: -37.2%
• Offaly: -34.1%
• Cork: -32.7%
• Roscommon: -32.3%
• Tipperary: -32.0%
• Laois: -30.6%
• Longford: -30.1%
• Westmeath: -30.0%

Dublin recorded the lightest decline at -1.1%, followed by Wicklow (-9.5%) and Meath (-11.4%). Every other county saw contractions of 13% or more, exposing how the burden has fallen on rural communities rather than the capital.

What excise cut is DIGI requesting?

DIGI secretary Donall O'Keeffe used the report to press the Irish government for an immediate 10% excise reduction in the upcoming Budget, framing the levy as the central competitive handicap for licensed premises.

"Our extremely high level of alcohol taxation in comparison to the rest of Europe is actively harming our sector and our customers who rely upon the public house as a hub of human connection," O'Keeffe said. "This is particularly true in rural settings where there is a greater risk of social isolation."

For operators, a 10% excise move would narrow the price gap with Northern Ireland and other EU markets, where duty on beer, wine and spirits remains materially lower.

How many more closures does Foley expect?

Without policy change, Foley's projections indicate the contraction has further to run.

"It is likely that pub closures will continue in the absence of any change in government policy," he said. "Even in the absence of additional significant economic shocks, an optimistic scenario would expect about 600 additional closures in the next decade from 2024. More pessimistic expectations would increase the closure level to 1,000."

The base case therefore implies Ireland's pub count falling below 6,000 by 2034, down from roughly 7,500 today.

What happens next?

The Irish Budget for 2026, expected in October, will be the first test of whether DIGI's excise proposal gains traction with the Department of Finance. Sustained closure rates at or above the 2025 level would push the country past the 2,500 lost-pubs mark within five years.